Merrick School Of Business 2012 Global Field Study Opportunities

Israel (March 16-24 2011)

Spring Break 2012

Dean Darlene Smith

Dr. Michael Laric

Overview

Pre-Trip Preparation -- Three sessions – In early January, February, March

– The Start-Up Nation as basis

– Lectures about the country and background

– Trip orientation and preparation

Trip -- Spring Break, March 16 – 24

Post Trip -- One session – In April

– Summary and debriefing

Trip Themes

Business (Start-up Nation)

• Entrepreneurship

• Innovation

• Growing economy

Socio-cultural & history

• Unique culture and environment

• Most non USA companies on NASDAQ

• Origins of major religions

• Unique history dating back to biblical times

Tentative Trip Itinerary

Friday March 16 -- Baltimore to Israel (depart from BWI)

Saturday March 17 -- Arrival & transfer to Jerusalem.

Sunday March 18 – Tour of old and new city (Christian Quarter, Stations of the Cross, Armenian Quarter, etc)

Monday, March 19 – Friday, March 23 – Site Visits in Jerusalem, Ashkelon, Tel Aviv

Saturday – Depart Tel Aviv; arrive at BWI

Start-up Nation: The Story of Israel's Economic Miracle

Dan Senor and Saul Singer

Start-up Nation

• Examines how

– A nation of immigrants

– 60-year old

– And a population of 7.1 million

• Reached a high rate of economic growth

• Called Silicon “Wadi”

• "at the start of 2009, some 63 Israeli companies were listed on the NASDAQ, more than those of any other foreign country.“1

1 JAMES K. GLASSMAN (2009). "Where Tech Keeps Booming In Israel, a clustering of

talent, research universities and venture capital..". Wall Street Journal. (November 23)

Start-up Nation Selected Reviews

• In 2010, this book was reviewed (David Brooks) and ranked fifth on the business best-seller list of the The New York Times.

• In 2009 it was review in the The Wall Street Journal and was in its bestseller list.

• A review of the book in The Irish Times calls on Ireland to follow Israel’s model

• The Economist notes that Israel now has more high-tech start-ups and a larger venture capital industry per capita than any other country in the world.

Start-up Nation HBS Cases

• Guntz, Ron. 2009). Israeli Special Forces: Selection Strategy, Harvard Business School Case

• Khanna, Palepu & Madras. (2006). Teva Pharmaceutical Industries, Ltd., Harvard Business Case:

• Chesbrough, Henry. (2002) Rafael Development Corporation – Converting Military Technology to Civilian Technology in Israel, Harvard Business Case

Some examples of companies’ exit strategies

• Teledata Communications Ltd. Acquired by Motorola for $140 million

• Teledata Communications Ltd. Acquired by ADC Telecommunications for $200 million

• Precise Software Solutions Ltd. Acquired by Veritas (now in Symantec) for $609 million

• Indigo NV. Acquired by HP for $680 million

• DSP Communications Ltd. Bought by Intel for U$1.6 billion

• Buffett’s only investment outside the US is a 4 billion dollar purchase of an Israeli company

List of “Axx” Israeli companies on NASDAQ

Name Ticker Year

Symbol Listed Sector / Products / Solutions

ACRO Inc. ACRI 2007 Defense

ACS Motion Control Ltd. ACSEF 1999 Electronic components

Allot Communications ALLT 2006 Networking & communication

Broadband ; Dual listed on TASE

Alvarion Ltd. ALVR 2000 Wireless technology (WiMax)

Dual listed on TASE

Ambient Corp. ABTG 1999 Networking & communication

Ampal-American Israel

Corporation AMPL 1979 Holding Company

Arotech Corporation ARTX 2002 Defense

Attunity Ltd. ATTU 1992 Software

AudioCodes Ltd. AUDC 1999 Networking & communication

VoIP ; Dual listed on TASE

List of “Bxx” Israeli companies on NASDAQ Name Ticker Year

Symbol Listed Sector Products / Solutions Notes

B.O.S. Better Online

Solutions BOSC 1996

Wireless

technology

RFID and Supply

Chain solutions

B.V.R. Systems (1998)

Ltd BVRSF 2004 Defense

BackWeb Technologies

Ltd. BWEB 1998 Software,

BigBand Networks, Inc. BBND 2007

Networking

&

communicati

on

Switched Digital

Video

BioLineRx Ltd. BLRX 2011

Biopharmac

euticals Dual listed on

TASE

BluePhoenix Solutions,

Ltd. BPHX 1997 Software

Legacy

modernization

Brainstorm Cell

Therapeutics Inc BCLI 2004 Biotech

Jerusalem – A City Sacred to Three Religions

Population 725,000

Ancient Biblical ruins

Churches, synagogues, mosques

Old city market place

Yad Va'Shem memorial

Dead Sea

Dead Sea -- The lowest place on earth

It is 1,388’ below sea level

The Dead Sea is 1,237’ deep, the deepest hyper saline lake in the world.

With 33.7% salinity, it is also one of the world's saltiest body of water though fed by the Jordan River

Greatest source of major minerals

Also an ancient fort in the war against the Romans

Desert Oasis

משטחי מלח באזור בתי המלון

Ashkelon - A sister city of Baltimore

Population 125,000

Ancient ruins – mentioned in Old Testament

Ashkelon College

Cleanest beaches on the Mediterranean

Sea water desalination plant

.תפוחי האדמה -אותנו ! איזה שאלה

Tel-Aviv –largest Metro area

Officially “Tel Aviv-Yafo” combines ancient and new

Second largest city, population 400,000

The metro area has 3.250.000 almost 50% of Israel

Biggest commercial center

Visible from a distance with its seafront skyscrapers

The country’s main airport